Also, it is important to notice, letters of intent are documents that do not work in Colombia. Cash is king and the sales contract makes the deal move forward.
The signing of the sales contract is made with 10 to 20% of the value of the property. (it can change depending on the conditions of the seller) the sales contract is done with money because the property may have debts with the bank and these debts must be canceled before the signing of the deed, usually, the money is used to pay the bank.
Buying contracts are documents that work for both local and foreign clients. The reason why letters of intent to purchase a property do not work well in Medellin is that it leaves the property out of the market and for a local seller it does not guarantee that the purchase will be made. That is why the sale contract is signed and it has penalties clauses if the buyer or seller withdraws from the business without a valid explanation, the penalty is usually between 10 and 20% of the value of the business.
Properties for sale in Medellin